Residuals: The Worst-of-Both-Worlds Scenario
How streamers, even if they say yes to demands, could still thwart the WGA's wishes
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In March, I wrote about my concerns surrounding flat-rate residuals for streaming TV shows in the current WGA/AMPTP negotiations. Now, everyone is talking about residuals. In fact, they’re one of the first things reporters mention when listing the WGA’s demands.
Since I first wrote about this, we’ve learned more about the WGA’s precise asks. Meanwhile, the streamers have started bringing my concerns about shows being removed from streaming services to life — in a big way.
In the last three months, we’ve learned:
The WGA’s actual demands, so we can analyze the guild’s asks.
The AMPTP’s counter-demands.
Details of the DGA and AMPTP agreement, and its focus on foreign streaming residuals.
That shows are disappearing fast as Disney also pulls under-performers from its streamers.
If the guild gets what it wants, the new residuals system will be more lucrative than it is now, including a huge increase in foreign residuals. Plus, high-performing streaming shows will get a bonus, just like hit network TV shows of old. Sounds great for the writers.
Right?
Today, though, I’ll discuss how this could go so wrong. On several fronts.
In this issue, I will…
Tell you how the studios and streamers could say yes to the WGA demands, put an end to the strike — and still leave the WGA coming up short.
Show the percentage of writers in the ’90s that actually hit the residuals jackpot as many romanticize the former system.
Model the WGA’s demands and explain what increases the guild is asking for.
Explain why finding a solution that makes everyone happy seems impossible.
Tell you what foreign distibution has got to do with the end result.
